A smartphone displaying the TikTok logo | pexels.com
A smartphone displaying the TikTok logo | pexels.com
Text Size:

San Francisco: Oracle Corp. is weighing a potential bid for part of TikTok’s business, seeking to rival Microsoft Corp. in the race to acquire the viral video streaming app, according to people familiar with the matter.

The company controlled by billionaire Larry Ellison has made a preliminary approach to other parties, including the venture capital firm Sequoia Capital, to partner with it in a bid for the app’s operations in the U.S., Canada, Australia and New Zealand, the people said, asking not to be identified.

The entry of Oracle could challenge Microsoft’s bargaining position, as the Redmond-based company had been the only party to publicly confirm it was in talks with TikTok owner ByteDance Ltd.. President Donald Trump on Friday ordered ByteDance to sell its U.S. assets within 90 days, adding to an earlier executive order that would prohibit U.S. persons and companies from doing business with TikTok effective 45 days from Aug. 6.

Oracle didn’t immediately respond while ByteDance declined to comment when contacted by Bloomberg. Sequoia, a venture investor in ByteDance, also declined to comment. The Financial Times reported on the talks earlier.

Oracle co-founder Ellison is one of the few Silicon Valley moguls to openly support Trump. The billionaire, whose company was once among the industry’s most aggressively acquisitive, has hosted a fundraiser at his estate for the U.S. president. Oracle — the world’s second-largest software maker — is focused on supplying to business customers and has virtually no investments in consumer apps or social media.

Valued at roughly $166 billion, Oracle held about $43 billion in cash or near equivalents as of the end of May, making it one of few companies that could potentially afford the lofty price tag for TikTok. Analysts and bankers have estimated the value of TikTok’s U.S. business at between $20 billion and $50 billion, a wide range that reflects the complexity involved in separating TikTok’s American and global businesses.

ByteDance bought the Musical.ly app in 2017 and merged it with TikTok, creating an app with over 100 million users in the U.S. alone. That deal is now being unraveled by U.S. officials, which have cited national security concerns amid escalating tensions between Washington and Beijing. Now, the company is facing a fast-approaching deadline to reach a deal, or risk facing a complete shutdown of its American business.

Other bidders potentially interested in the assets include Twitter Inc. The social media company is among U.S. tech firms that have also explored possible bids though it’s unclear how far those talks have gone, according to multiple people familiar with the deliberations. –Bloomberg 

 

Subscribe to our channels on YouTube & Telegram

News media is in a crisis & only you can fix it

You are reading this because you value good, intelligent and objective journalism. We thank you for your time and your trust.

You also know that the news media is facing an unprecedented crisis. It is likely that you are also hearing of the brutal layoffs and pay-cuts hitting the industry. There are many reasons why the media’s economics is broken. But a big one is that good people are not yet paying enough for good journalism.

We have a newsroom filled with talented young reporters. We also have the country’s most robust editing and fact-checking team, finest news photographers and video professionals. We are building India’s most ambitious and energetic news platform. And we aren’t even three yet.

At ThePrint, we invest in quality journalists. We pay them fairly and on time even in this difficult period. As you may have noticed, we do not flinch from spending whatever it takes to make sure our reporters reach where the story is. Our stellar coronavirus coverage is a good example. You can check some of it here.

This comes with a sizable cost. For us to continue bringing quality journalism, we need readers like you to pay for it. Because the advertising market is broken too.

If you think we deserve your support, do join us in this endeavour to strengthen fair, free, courageous, and questioning journalism, please click on the link below. Your support will define our journalism, and ThePrint’s future. It will take just a few seconds of your time.

Support Our Journalism